Consumer behaviour: The superior way to grow

David Cowan

David Cowan presents a compelling argument for growth that comes when marketing activities are based on rigorous, wide-ranging and purposeful analysis of consumer behaviour

COMPANIES GROW in different ways. Desirable though they may be, both innovation and acquisition are expensive and risky. More ingenuous marketing actions with existing brands should be the priority.

It is widely agreed that growing through acquisition produces very uncertain returns. The acquirer pays an acquisition premium, the cultures of the acquirer and the acquired are often difficult to square and the promised scale economies and cross-selling opportunities frequently fail to materialise. Often a few years down the track the acquisition is disgorged and the exercise has been a gigantic waste of money and time and destroyed shareholder value.